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The 45° Line in the Keynesian Cross Model Shows

Question 3

Multiple Choice

The 45° line in the Keynesian Cross model shows:


A) the points where planned expenditure is lesser than the national output.
B) the points of intersection between aggregate demand and aggregate supply.
C) the points at which planned expenditure is equal to ?rms' actual output.
D) the points where planned expenditure is greater than the national output.

Correct Answer:

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